scorpio 2 (2)

SCORPIO FROM MAHINDRA:GEARED UP FOR SUCCESS

Presented by:

Dr. Gaveshna

Dr. Manpreet

Dr. pallavi

Shivani goel

Rahul Raj

Tarun kumar arora

Introduction:Mahindra and Mahindra A major automobile company in India

Flagship company of Mahindra group

The Mahindra Group is a $ 4.5 billion * conglomerate is a leading manufacturer of multi-utility vehicles with significant presence in key sectors like farm equipments, infrastructures, information technology and financial services.

The Group has leading presence in many key sectors:-

1)Automotive (Mahindra& Mahindra LTD.)

2)Farm equipment (Mahindra Tractors)

3) Mahindra trade and Financial Services (Mahindra Inter trade Mahindra &Mahindra Financial Services Ltd

4) Mahindra Systems and Automotive Technologies (Mahindra Engineering Services, Mahindra Ugine )

5) Information Technology (Tech Mahindra,

Bristlecone) and Infrastructure Development

(Mahindra GESCO, Club Mahindra Holidays,

Mahindra World City).

Is Scorpio a new product or an example of line extension?

Product line – A group of products within a product class that are closely related because they :

• Perform a similar function• Are sold to the same customer groups• Are marketed through the same outlets

or channels• Fall within given price ranges

Product development- two types New products range from new-to-the-world

products that create an entirely new market at one end, to

minor improvements or revisions of existing product at the other.

Yes ,SCORPIO is a new product development.

As before the launch of Scorpio, Mahindra & Mahindra image was a big barrier.

It only covers semi-urban and rural markets in India.

In 1990’s the company was experiencing loss of share.

Objectives of this new product development To create a new segment and retain

market domination To differentiate offering i.e. to provide an

excellent value proposition to the customer

To become a significant global player in the chosen product category

To optimize project cost

Deriving forces which leads to the new product development

India enjoys a distinct cost advantage with respect to auto-ancillary manufacturing capabilities.(Indian labor cost is only around 8-9% of sales)

MUV as a % of the overall passenger car market was just 16% in 2001.

Consumers want to consume premium imagery at prices affordable to them.

Untapped niche: Mahindra was lacking in products that catered to the modern urban consumer needs.

The market was moving from traditional multi utility ,non-luxurious vehicles to luxurious vehicles.

To achieve these purposes, the company started the product development process termed IDAM- Integrated Design And Manufacturing.

The company ‘Mahindra &Mahindra’ launched the new vehicle successfully in 2002 under the brand name..

SCORPIO

MANAGEMENT DECISION TO LAUNCH SCORPIO

Urban market was showing more potential for vehicle sales and UVs were gaining higher acceptability in urban areas International UVs were entering the market and competition was getting tougher The market was moving from traditional multi utility , non luxurious vehicles to luxurious vehicle …….

From consumer perspective customer preferred big size as its

stands for status .

Consumer seeks latest technology

Customer wants the sheer thrill and passion of driving an SUV but at affordable price

From context of Mahindra Mahindra (in late 1990s) a leader in UV

segment was losing their market share . Global player were entering in the

market and aggressively launching products

Mahindra share of business was largely from semi urban and rural market of India

Mahindra sales come from institutional sales army , police , military groups

They had wide product port folio but was lacking in product that catered to modern urban consumer needs

The market where Mahindra was strong were stagnating …..

Mahindra image………..

Mahindra image was a big barrier there brand were not seen as modern and technological advance .

there image was uncomfortable , rough , not easy to drive ,

So management decided to launch scorpio with a following objectives

to create a new segment and retain market domination .

To differentiate offering that is to provide an excellent value proposition to customer .

To optimize project cost .

There was no SUV in the country that the masses could buy .

So based on consumer research Mahindra found to make SUV’s a mass concept in India seen as comfortable , easy to drive , and imaginary comparable to international brand.

So to make Mahindra and Mahindra known world wide for the quality , durability , and reliability , of its product and services and to dominate in the niche UV market they decided to launch scorpio .

POSTIONING OF SCORPIO

Scorpio as a powerful vehicle with a sporty look among the premium car consumers

Luxury of car , thrill of SUV Make good quality vehicles Create to drive Proud to own

RATIONAL BENEFITS – world class vehicle ,good looks , car like comfort , great value

VALUE BENEFITS – ownership experience of thrill, excitement ,power relational benefits

RELATIONAL BENEFITS – young , modern , premium ,city companion/extension of lifestyle

BRAND PROMISE – luxury of a car , thrill of an SUV

Advertising and promotion strategy

“Nothing else will do”

Scorpion king

Media coverage on IDAM approach , people behind Scorpio world class technology etc

CREATE SOCIAL RESPONSIBILITY

SCORPIO EVENTS

2002:Scorpio STD and DX:

2003:The new scorpio

2004:Scorpio Slx

2005:Scorpio Crde

2006:43 new features

2007:VLX

2007:LX

2008:Scorpio automatic

2009:The new ICONIC Scorpio

201O Mahindra interior

2011 SCORPIO LX 4×4

ANOTHER AUTOMOBILE COMPANY THAT COULD LEARN FROM “PROJECT SCORPIO

CHALLENGES FACED BY “PROJECT SCORPIO”

Positive but unfavorable brand

Image . Negative parameters

* Uncomfortable and rough.

* Not easy to drive and

* Rural imagery.

STRATEGIES ADOPTED

Proper market research ADOPTED UNIQUE PROCESS i.e.

IDAM Strong positioning Competitive price advantage .

AUTOMOBILE COMPANY THAT COULD LEARN FROM “PROJECT SCORPIO” IS

MARUTI SUZUKI

WHY MARUTI SUZUKI ??

Both Mahindra & Mahindra and Maruti Suzuki have positive brand image but unfavorable to cater luxury segment.

Like “Project Scorpio” Maruti Suzuki can stretch upward by introducing new product line i.e. SUV’s.

Innovation in terms of technology . Educating customer about novel concept

of their SUV’s by choosing right media mix and promotion activities.

CURRENT STATUS

Domestic Market Share for 2010-11

Passenger Vehicles 16.25 Commercial Vehicles 4.36 Three Wheelers 3.39 Two Wheelers 76.00  

THANK YOU